Innoventive Industries Vs Kumar Motors Pvt. Ltd.

Fact of the case:

The Appellant filed an application under Section 7 of the ‘Insolvency and Bankruptcy Code, 2016 (“I&B Code”) for initiation of ‘Corporate Insolvency Resolution Process’ against ‘Kumar Motors Private Limited’- (‘Corporate Debtor’) on the ground that the said Respondent defaulted for making repayment of Rs. 24,06,52,849.50/- along with interest. NCLT Mumbai Bench, rejected the application on the ground of pendency of a winding-up proceeding against the ‘Corporate Debtor’.

Question of law:

Whether an application under Section 7 of the ‘I&B Code’ can be rejected on the ground of pendency of a winding-up?